Steptoe
US law firm warning that CAIDA's Buy European tilt risks the EU-US Turnberry trade truce.
Last refreshed: 4 June 2026 · Appears in 1 active topic
How does a US law firm's analysis shape EU tech regulation decisions?
Timeline for Steptoe
Mentioned in: Two OFAC clocks, one supply problem
European Oil Markets- What did Steptoe say about CAIDA and US trade risk?
- Steptoe published analysis warning that CAIDA's proposed Buy European tilt in public procurement (requiring preference for European cloud providers in health, finance, judicial and energy tenders) could constitute a trade barrier sufficient to trigger US Section 301 retaliation. The firm estimated US firms face USD 50 billion per year in combined DMA and DSA compliance costs across the EU.Source: European Tech Sovereignty coverage
- What is the Turnberry trade truce between the EU and the US?
- The Turnberry truce refers to the informal US-EU understanding reached at the G7 Turnberry summit to pause escalating tariff and trade-barrier disputes. Steptoe's CAIDA analysis warned that Buy European procurement rules would violate that truce and invite retaliatory Section 301 action from Washington.Source: European Tech Sovereignty coverage
- How much do DMA and DSA compliance cost US tech firms in Europe?
- Steptoe estimated combined DMA (Digital Markets Act) and DSA (Digital Services Act) compliance costs for US firms at approximately USD 50 billion per year across the EU. The firm argued that adding CAIDA's Buy European procurement preference on top of that would cross the threshold for retaliatory US trade action.Source: European Tech Sovereignty coverage
- What is Steptoe LLP known for in EU regulatory law?
- Steptoe LLP is a US-headquartered international law firm founded in 1940 with offices in Washington DC, Brussels, London and Beijing. Its Brussels practice advises multinational corporations on EU competition, DMA compliance, trade-policy monitoring, and US-EU regulatory exposure. The firm publishes client-facing legal analysis on major EU legislative proposals including the CAIDA package.Source: European Tech Sovereignty coverage
- What is Section 301 and how could it affect EU cloud rules?
- Section 301 of the US Trade Act of 1974 allows the US government to impose tariffs or other trade restrictions on countries whose policies are deemed unreasonable or discriminatory toward US commerce. Steptoe warned that CAIDA's Buy European procurement preference in regulated sectors could be designated a Section 301 target, bringing retaliatory tariffs on EU exports to the United States.Source: European Tech Sovereignty coverage
Background
Steptoe LLP is a US-headquartered international law firm with offices in Washington DC, Brussels, London and Beijing, founded in 1940. Its practice covers international trade, sanctions, regulatory compliance and dispute resolution, with a substantial transatlantic docket advising multinational corporations on EU and US regulatory exposure. Steptoe's Brussels office handles EU competition, DMA compliance and trade-policy monitoring, giving it direct sight of Commission legislative developments. The firm is not a lobbying organisation but publishes client-facing legal analysis on major regulatory proposals.
Steptoe published analysis in May-June 2026 warning that CAIDA's proposed 'Buy European' tilt in public procurement (requiring preference for European cloud providers in health, finance, judicial and energy tenders) threatens the Turnberry trade truce between the EU and the United States. The firm estimated US firms face USD 50 billion per year in combined DMA and DSA compliance costs across the EU, and argued that adding procurement preference on top of that would constitute a trade barrier sufficient to trigger retaliatory Section 301 action . Steptoe's analysis was circulated among member-state trade ministries as one of several external legal opinions influencing the College's repeated deferrals of the package.
